Jakarta. Indonesia’s parliament has agreed on changed assumptions for revising its 2015 state budget, including slightly slower growth and higher inflation than were assumed in September, the head of its budget committee said on Friday.

The new assumption for growth is 5.7 percent, compared with the 5.8 percent used when the previous government in September presented the initial 2015 budget.

On Thursday, the statistics bureau reported that economic growth in 2014 was 5.02 percent, the lowest since 2009.

Ahmadi Noor Supit, committee head, said the parliament’s budget committee and the new government also agreed to base the revised budget on annual inflation of 5 percent, higher than the 4.4 percent assumed in September.

The newly assumed average oil price is $60, far below the $105 figure used in September.

The yield of government’s three-month treasury bills at 6.2 percent, from 6.0 percent in September, and an average rupiah exchange rate 12,500 per dollar is now assumed, compared with 11,900 rupiah earlier, Ahmadi said.

The budget body also upheld the energy committee’s earlier estimate for oil and gas lifting at 825,000 barrels per day and 1.221 million barrels of oil equivalent per day respectively.

The 2015 state budget revision, which should be the first budget to reflect President Joko Widodo’s reform agenda, will be subject to parliament’s approval, due later this month.

Reuters

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Source: The Jakarta Globe